The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-06-03
RUHORS OF FAILURES
OF FIRE INSURANCE COMPANIES
FLYING ABOUT,
Caused by the Three Large Fires
Last Week-The Phenix Of
London, "Hard Hitj'

NEw York, May 2.-The Tribune
says: Rumors of failures OF fire in
surance companies were flying about
thick and fast among insurance men
yesterday. They were caused by the
three large fires Of the LAST week-the
Bait line car gables, Palmer cooper
age shops in Williamsburg, and John
8. Richards's warehouse at West and
King streets on each OF which Ger.
tain companies, which had already
sustained large Losses this year, had
unusually big lines. In the five
months since January LIST the number
Der of fires entailing great losses have
been greater than in any similar period
since the many fires in the dry goods
district since 1879. The result has been
that several companies have been
"hard HIT" as the expression is, and
II they do not euCcumb they will
probably be obliged to pass one or two
dividends, The largest loser in the
fires of the last week was the Phe ak
Company, OF London. 1t had line
Of $28, $50 on the Belt line stables and
$47, 500 on the Williamsburg cooper.
age shops, and it's total loss on the two
cannot fail short of 100000. These are
abnormally large amounts to place on
single risks, hut it was explained by
one of the Ulcers of the company in
this way: eve began on May 1, 1856,
to increase our lines OF insurance on
certain classes OF risk and TO issue pol
icies for from $4,000 to $4,000. 1t
was, Ia measure, q new departure,
and we placed this kind OF business in
aeeparate department known as the
Jumbo Line Department. AS we as
sumed big risks We naturally expected
big Losses, and calculated that we
would be able to pay out $40, 900 day
without impairing our surplus. Thus
far we have been successful beyond
expectation, and, notwiths anding the
large losses OF the past few days, our
premiums have been considerably
more than enough to keep us even."
Another of the companies which was
said to be affected by the recent fires
is the Fire Association, OF New York.
This was organized less than one year
ago, with small capital, and has
made ecialty OF placing large lines,
running as high as $4,000. Early in
March it had two large loyses, and was
involved to the ex ent OF 500, 600 in the
Williamsburg cooperage fire and $4,000
in the King street warehouse BLAZE
Vanderbilt Allen, the president, said
that even If ibis was total less, which
he doubted, his company would not
be seriously affecte d, SO it had had an
unusually good run of lucS, not hav
ing had fire for the first six months
of its existence and ext emely few
since. 1t was impossible to learn yes
terday the full amount of insurance on
the King street fire, as many officers
of the companies interested were
too busy adjusting other losses to
be present at the meeting of the Board
OF Underwriters, but it is believed to
be 1854 900. The American Insurance
Company placed $4,000 on the build
ing, which ia owned by Both g. Ed.
gar, and Is damaged $4,000, and the
Liverpool and London and Globe,
Scottish Union, London Assurance,
Mechanics and Merchants and Sun
Fire Companies issued the largest
policies on the contents. A great eff
fort has been made by companies in
terested to prevent the publication of
q complete list of the assurances on
the Belt line car stables, as it was
feared that it would effect their stand
ing.